Module 5 & 6 Key Terms

A market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold.

• Supply Market

• competitive market

• Demand Market

• Competitive Equilibrium

Shows how much of a good or service consumers will be willing and able to buy at different prices.

• Supply curve

• Supply schedule

• Demand schedule

• Substitutes

A graphical representation of the demand schedule. It shows the relationship between quantity demanded and price.

• Supply curve

• Demand schedule

• Supply schedule

• Demand curve

A change in the quantity demanded of a good that is the result of a change in that good's price.

• Substitutes

• movement along the demand curve

• Demand curve

• Complimentary goods

If a rise in the price of one of the goods leads to an increase in the demand for the other good.

• Complements

• Normal good

• substitutes

• Inferior good

A rise in the price of one of the goods leads to a decrease in the demand for the other good.

• Substitutes

• Complements

• Demand curve

• Inferior good

When a rise in income increases the demand for a good—the normal case.

• Inferior good

• Complements

• Normal good

• Law of goods

When a rise in income decreases the demand for a good.

• Substitutes

• Normal good

• Complements

• Inferior good

Illustrates the relationship between quantity demanded and price for an individual consumer.

• Law of demand

• individual demand curve

• Change in demand

• Demand curve

A model of how a competitive market works.

• Quantity demanded

• Supply and demand model

• Law of demand

• Change in demand